The US Department of Energy has announced a substantial $1.25 billion loan to electric vehicle charging company EVgo, aiming to significantly expand the country's EV charging infrastructure. The loan will enable EVgo to install approximately 7,500 chargers at roughly 1,100 charging stations across the US over the next five years, with a focus on fast-charging 350kW stalls capable of charging two vehicles simultaneously.

This development is part of the Biden administration's accelerated efforts to finalize its spending on EV projects before Donald Trump takes office. Trump has promised to reverse or cancel much of the spending on EVs, including the $7,500 tax credit for new EV purchases and the rest of the spending from the Inflation Reduction Act (IRA) on EV charging infrastructure.

In the past month, the Energy Department has been rapidly approving EV-related loans, including $7.54 billion for a battery factory in Indiana and $6.6 billion for an EV plant in Georgia. These loans are not only intended to support the growth of the EV industry but also create jobs. According to EVgo, its expansion project will support the creation of 180 external construction jobs and over 550 maintenance and support jobs.

EVgo, based in Los Angeles, is working closely with General Motors on the installation of thousands of EV chargers across the country. The companies recently celebrated the activation of their 2,000th charging stall. The fragmented and often frustrating nature of the current EV charging landscape has been widely cited as one of the most significant barriers to EV adoption. Owners frequently complain about unreliable charging or broken equipment as one of the most frustrating things about driving an EV.

In an effort to address this issue, President Joe Biden vowed to build 500,000 chargers by 2030 as a way to spur more EV sales, including $7.5 billion for charging expansion in the Bipartisan Infrastructure Bill. While the initial years of funding were slow, recent updates have shown that progress is finally being made. According to the DOE, there are currently more than 204,000 publicly available charging ports, with nearly 38,000 new public chargers already having been added this year and nearly 1,000 new public chargers being added every week.

This significant expansion of the EV charging network is expected to have a profound impact on the adoption of electric vehicles in the US. As the country continues to transition towards a more sustainable transportation system, investments like this loan to EVgo will play a crucial role in supporting the growth of the EV industry and reducing the nation's reliance on fossil fuels.

With the clock ticking on the Biden administration's time in office, it remains to be seen how much of this spending will be reversed or canceled by the incoming Trump administration. However, for now, the EV industry can take heart in the significant progress being made towards a more comprehensive and reliable charging infrastructure.